Canada Introduces Bill C-25 to Ban Crypto Donations in Politics

Canada Moves to Outlaw Crypto in Political Fundraising

Canada's House of Commons has received Bill C-25, officially titled the "Strong and Free Elections Act," which seeks to completely ban cryptocurrency donations in the country's political system. The proposed restrictions cover registered parties, electoral associations, individual candidates, and third parties engaged in election advertising.

The bill's sponsors argue that the pseudonymous nature of cryptocurrency creates significant transparency challenges for the electoral process. According to the legislation, identifying participants in crypto transactions is "inherently difficult."

Violations would carry a penalty equal to twice the amount of the unlawful contribution. Bill C-25 is currently at the first reading stage in the House of Commons.

Why This Matters

Canada is positioning itself among Western democracies that are actively closing the door on cryptocurrency in political finance. The move comes shortly after the United Kingdom adopted emergency legislative changes in March 2026 to restrict crypto donations in politics. Together, these developments signal a growing consensus among major democracies that digital assets pose unacceptable risks to electoral transparency. The outcome of Canada's legislative effort could influence how other jurisdictions approach the intersection of crypto and political funding.

A Second Legislative Attempt

Bill C-25 is not Canada's first try at banning crypto political donations. Its predecessor, Bill C-65, contained identical provisions but was shelved when Parliament was dissolved in January 2025. The new bill revives those same core restrictions.

Cryptocurrency donations have been technically legal in Canada since 2019, classified under existing administrative rules as non-monetary contributions similar to property. However, no major federal party publicly accepted crypto during either the 2021 or 2025 elections. Additional constraints were already in place: crypto contributions did not qualify for tax credits, and donors contributing more than $200 had to be publicly identified.

Chief Electoral Officer's Shift Toward Prohibition

The trajectory toward a ban has been shaped significantly by Canada's Chief Electoral Officer, Stéphane Perrault. Following the federal elections in June 2022, Perrault recommended tightening regulations around crypto donations. By November 2024, his stance had hardened considerably — he called for a complete prohibition on cryptocurrency in political fundraising, citing persistent challenges with donor identification.

Bill C-25 effectively translates Perrault's recommendations into legislative action. The bill's future now depends on the outcome of parliamentary deliberations as it progresses through the legislative process.